A Technological Improvement Lowers the Cost of Producing Coffee

question 90

Multiple Choice

A technological improvement lowers the cost of producing coffee. At the same time, consumers' preferences for coffee increase. The equilibrium price of coffee will

• A) rise.
• B) remain the same.
• C) fall.
• D) rise, fall, or stay the same, depending on the relative size of the shifts in the demand and supply curves.

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Definitions:

Kraut and Johnston

Researchers known for their studies in social psychology, particularly in the context of human interactions and the effects of computer-mediated communication.

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A type of sport where individuals organize into opposing teams and compete to achieve a common goal.

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Cultural norms that dictate the appropriate expressions of emotions in various social situations.

Expressions

Visible manifestations of internal emotions, thoughts, or feelings, often communicated through facial movements, gestures, or speech.